Rep. Wasserman Schultz: Republican Policies Ignore Barriers to Latino Wealth-Building

Rep. Wasserman Schultz: Republican Policies Ignore Barriers To Latino Wealth-Building

Washington, DC - Rep. Wasserman Schultz today issued the following statement regarding wealth-building in the Latino community:

"After dramatic gains in wealth and opportunity during the Clinton administration, economic growth in the Latino community has gone stagnant under President Bush. Major barriers remain in bringing wealth and opportunity to the Latino community, but the Bush administration has chosen to refocus government priorities.

"The Bush administration has chosen to prioritize rewarding wealth rather than the Clinton-era focus on work. Such Republican initiatives as tax cuts for the wealthy, corporate giveaways, a misguided energy policy, and a terrible Medicare bill have all contributed to hurt the Latino community under the Bush administration. Democrats have fought these initiatives, and will return the Latino community to its pre-Bush era rise to prosperity."

Under the Clinton Administration, Latino household wealth increased by 66%.

Rep. Wasserman Schultz said "Unfortunately, since President Bush has taken office, he has chosen instead to focus his attention on helping those with wealth, rather than expanding opportunities to others."

There are still major barriers affecting opportunity in the Latino community. Some of those include:

* Lack of available capital - Latinos earn thousands less per year than the average American worker and have the lowest savings of any demographic group in America. Further, many Latinos lack a long credit history and, with 35% of Latinos not even having a bank account which is fundamental for building a relationship with financial institutions, Latinos have trouble accessing necessary lines of credit that can help build wealth investment.

* Language Barriers/Limited Community Ties -Language barriers and limited community ties can restrict the financial services available to Latino families. Banks, realtors, and other financial consultants that can't speak Spanish automatically exclude certain individuals from their services, and Latinos who may be new to a community will have problems knowing where to turn for help.

* Lack of Accumulated Wealth - The average Latino accumulated wealth at retirement is $200,000; markedly lower than any other major demographic. Thus, with low amounts of savings, Latino families tend to have less money to invest and less money for a down payment on a house, and Latino children have less inheritance that would help them accumulate wealth for their families.

Rep. Wasserman Schultz continued, "Despite these barriers, Republicans have pushed for total repeal of the inheritance tax, have cut taxes for the wealthiest in America while cutting services to the most needy, and have supported such anti-Latino measures as English first, cutting the EVEN Start Program which helps families learn English together, and restricting the use of the Matricula Consular card which can be some Latinos only form of identification.

"Democrats have fought against these initiatives. Democrats will always fight to expand opportunities to more Americans. We will focus our work on tearing down barriers that restrict opportunity for families in this country, not on rewarding the richest ten percent," Rep. Wasserman Schultz concluded.

http://www.house.gov/apps/list/press/fl20_schultz/latinowealthbarriers.html